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MIDLOTHIAN, Va., May 20, 2013 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. (Nasdaq:BVA) reported net income of $222,000, or $0.08 per share, for the quarter ended March 31, 2013, compared to net income of $53,000, or $0.40 per share, for the quarter ended March 31, 2012. The quarterly earnings were boosted by a $238,000 increase in net interest income attributable primarily to a $71 million increase in loans at its Bank of Virginia subsidiary.
"Our profit in Cordia's first quarter as a public company reflect Bank of Virginia's success in all elements of our asset growth strategy," said Jack Zoeller, President and CEO. "We launched a new student loan program that exceeded $34 million by quarter's end, expanded our mortgage loan program by $30 million and originated $11 million of new commercial loans. We also reduced our cost of funds while increasing our deposit funding base by $70 million. "
"We continue to be pleased at the steady migration of previous problem loans either to satisfactory ratings or out of our portfolio, without any adverse impact on capital," he continued. "This reflects extremely favorably on both the reserve valuations made in previous periods and the disposition strategies of our credit and lending teams."
Balance Sheet and Asset Quality
The company grew total assets to $250.4 million at March 31, 2013, an increase from $164.3 million at March 31, 2012 and $178.7 million at December 31, 2012. Total deposits were $225.7 million at March 31, 2013 compared to $146.3 million at March 31, 2012 and $154.4 million at December 31, 2012. In the second half of 2012 and continuing through the first quarter of 2013, the company increased its deposit base in anticipation of funding a residential mortgage held for sale loan program and purchase of student loans guaranteed by the U.S. Department of Education. In support of these loan growth initiatives, the company has developed several funding strategies, including the judicious use of brokered and institutional deposits to augment core deposit growth and further reduce the cost of funds.